Another record high: Dow approaches 22000

Randall Padilla
August 3, 2017

It helped dispel one of the few nagging doubts of the corporate earnings season so far - that Amazon's lacklustre results last week might have revealed some tiredness among the giant US tech and internet stocks that have been driving the stock market rally all year.

Apple reported better-than-expected iPhone sales, revenue and earnings per share and signalled its upcoming 10th-anniversary phone is on schedule. The Nasdaq composite increased 14 points, or 0.2 percent, to 6,362.

In Australia, the S&P/ASX 200 was off by 0.56%. Stocks in Southeast Asia were mostly higher.

The market's gains this week came despite mostly disappointing economic data.

Meantime, the Institute for Supply Management has reported United States factory activity expanded with the USA manufacturing index registering 56.3 in July, slightly less than the 56.5 expected.

Furthermore, it is going into this week's report with two consecutive double-digit percentage beats and a positive Earnings ESP.

JPMorgan's Kelly urged investors not to "get lulled into complacency" by the new highs in the US stock market.

That often runs up against the interest of leaders of high-growth, often technology companies that resist coming to public markets and offering full voting rights out of fear they will lose control of their companies. Cambridge Advisors Inc. now owns 6,528 shares of the company's stock valued at $1,392,000 after buying an additional 25 shares during the period. It also eased concerns about production problems for the next-generation iPhone. Apple shares jumped almost 6% to a record $159 (£120).

So far this year, the small-cap Russell 2000 has had less than half the gain of the S&P 500 index, at 5 percent versus 11 percent.

Traders work on the floor of the NYSE at the opening bell at the New York Stock Exchange on Wall Street in New York City on Tuesday. In 3.15pm trading, the Standard & Poor's 500 Index added 0.2 percent.

Apple shares traded at US$157.14 after hitting a record high of US$159.75 in the wake of its earnings, helping lift the Dow above the 22,000 mark.

The earnings boom has helped fuel a series of records in the last couple of weeks for all three major U.S. stock indices, which also includes the tech-heavy Nasdaq.

The S&P financial index led with a gain of 0.81per cent. JPMorgan Chase rose 1.34per cent and Goldman Sachs added 0.74per cent.

Oil traded near $49 a barrel as US crude stockpiles expanded, while copper dropped a second day. It dropped 94 cents, or 1.8 percent, to finish at $51.78 a barrel on Tuesday.

The effect goes beyond stocks: Big rallies for yields on Treasury bonds and the dollar's value against other currencies have also faded.

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